Japanese Retail Traders Defy Yen Rally with Record Short Bets

Japanese retail traders remain bearish on the yen despite its recent rally, holding a record amount of short positions against the currency. According to estimates from Rinto Maruyama at SMBC Nikko Securities, Japanese household investors held 2.886 trillion yen (approximately $18.6 billion) in short bets against the yen at the end of August.

This represents more than half of the global retail short positions against the yen and stands in contrast to the broader market, where speculative accounts have flipped to long yen bets following its seven-month high of 152.89 per dollar on September 8.

The conviction among Japanese retail investors remains firmly bearish, with increases in yen shorts against the dollar by 50 percent since September 1, according to Shuhei Uehara at Gaitame.Com.